The L'OREAL Annual General Meeting of Shareholders was held at the headquarters of UNESCO on Wednesday, 29th May 2002, under the chairmanship of Mr Lindsay OWEN-JONES, Chairman and CEO. In his address, Mr OWEN-JONES pointed out that: "Our priority is to pave the way for continuous and sustainable growth in future years while continuing to improve our margins".

Acting in its ordinary capacity, the Annual General Meeting:

- approved the parent-company financial statements and the consolidated financial statements for 2001. Consolidated sales amounted to € 13.7 billion, while net profit before capital gains and losses and after minority interests was in excess of € 1.2 billion, resulting in an earnings per share figure of € 1.82, which represents a 19.6% increase.

- decided to pay a net dividend of € 0.54 per share, to be paid on 4th June 2002 by any financial intermediary. This represents growth of 22.7% compared with the dividend paid in 2000, and the payment date has been considerably brought forward.

- renewed the terms of office of five directors: Mr Lindsay OWEN-JONES, Mr Francisco CASTANER BASCO, Mr Marc LADREIT de LACHARRIERE, Mr Olivier LECERF and Mr Michel SOMNOLET and appointed three new directors: Mr Jean-Louis DUMAS, Mr Xavier FONTANET and Mr Franck RIBOUD, the Chairmen of Hermès, Essilor and Danone respectively. The appointment of three personalities from the international industrial world is intended to strengthen the Board of Directors and its independence.

- renewed the authorisation regularly granted to the Board of Directors for a period of 18 months for the buyback, if necessary, of a number of the company's own shares representing up to 6% of the share capital.

Acting in its extraordinary capacity, the AGM modified the articles of association of L’Oréal S.A. to bring them into line with the new provisions of the French Act no. 2001-420 of 15th May 2001 relating to new economic regulations.

The next issue of L'Oréal's "Letter to Shareholders", available on request, will contain a summary of the AGM.

Finally, at the end of the Annual General Meeting, the Board of Directors decided not to separate the position of Chairman from that of Chief Executive Officer. It therefore renewed the appointment of Mr Lindsay OWEN-JONES to both positions for the length of his term of office as director, in accordance with the company's articles of association.

For further information, please consult your bank, broker or financial institution, or your usual newspapers. Alternatively, you may consult the Internet site specially provided for shareholders and investors, www.loreal-finance.com. Alternatively, call the following number +33 1 58 13 51 36